(Alliance News) - Supply challenges failed to slow steady trading momentum at Grafton Group PLC, as the Dublin-based DIY retailer reported on Wednesday that revenue had risen by more than one quarter in 2021.
Grafton highlighted that positive second half revenue trends had been sustained to the year-end with annual adjusted operating profit now expected to be at the top end of expectations.
Revenue from continuing operations for the year that ended December 31 was up 26% to GBP2.11 billion from GBP1.68 billion in 2020 and by 28% per cent from GBP1.64 billion in pre-pandemic 2019.
The group's Manufacturing revenue was up 62% year-on-year while its Retailing division saw top-line growth of 15%.
Grafton acknowledged a backdrop of generally favourable trading conditions. Supply chain pressures had moderated, and building materials price inflation continued to be a key component of revenue growth in the distribution businesses, particularly in the UK and Ireland.
Grafton said its full year adjusted operating profit for continuing operations is now expected at the top end of expectations after an "exceptional" performance in 2021. Current consensus forecast is for GBP270.4 million, with a range of GBP266.7 million to GBP276.3 million. Adjusted operating profit before property profit was GBP190.7 million in 2020.
"The group's portfolio of high returning businesses performed strongly leading to a record outcome for the year," explained Chief Executive Gavin Slark.
"The overall outlook remains positive and we look to the future with confidence given the strength of our businesses, strong balance sheet and good pipeline of investment opportunities."
Shares in Grafton were up 3.1% at 1,219.00 pence on Wednesday morning in London.
By Will Paige; willpaige@alliancenews.com
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Grafton Group (GFTU)